Wellington Drive Technologies is still aiming to break even without resorting to another capital injection, despite its total full year loss worsening by 69%.The company (NZX:WDT) recorded a total loss of $16.74 million for the year ended December, after
Wellington Drive Technologies is still aiming to break even without resorting to another capital injection, despite its total full year loss worsening by 69%.
The company (NZX:WDT) recorded a total loss of $16.74 million for the year ended December, after posting a $10.03 million loss for the previous year.
Even though revenues rose from $14.5 million in 2008 to $22.4 million, this was still well below the $40 million forecast in its prospectus from this time last year.
Twelve months ago, the company said it was expecting to sell 400,000 motors to display fridge maker Vendo de Mexico, but today’s results reveal only half of those sales were completed in 2009.
Overall, more than 600,000 motors were sold after initial predictions it would break the million mark this year.
Chief executive Ross Green said the company had been “battered” by the global recession that forced Wellington Drive’s customers to reduce or delay orders.
Despite conceding the result was disappointing, chairman Rick Boven said sales growth was expected to continue the upward trend shown this year, especially in the market for motors for commercial refrigeration in North America.
Dr Boven said the company’s budget for 2010 projected “significant reductions” in losses and growth in revenues.
“The year has started positively with strong order flow in commercial refrigeration and ventilation. Indeed, some sales are currently more constrained by ability to supply than demand, and certainly for at least the first half of 2010 it appears demand will be above budget projections.”
This confidence has seen the company confirm it would not seek any further capital raisings before it made the long-awaited move into profitability, after raising $22 million last year.
